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Rejection Affecting Credit Score

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Rejection Affecting Credit Score

edited 30 November -1 at 1:00AM in Credit Cards
10 replies 1.5K views
logans34logans34 Forumite
1 posts
edited 30 November -1 at 1:00AM in Credit Cards
Hello everyone. I have a question about applying to credit cards. My credit is fair at the moment due to the fact that I got into serious debt some time ago. I've gradually built it back up with a Vanquis card which I'm not far from paying, but I really need a proper credit card for various reasons. I did a credit card eligibility check with Money Saving Expert and it looks like I can apply to some credit cards. Thing is though, if I was rejected however, will that affect my credit rating? If there is an answer to this query, then can someone please post the link. Thank you.

Replies

  • zx81zx81 Forumite
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    Rejections aren't recorded on credit files and you don't have a credit score. So no.

    All that will show is a search.
  • chattychappychattychappy Forumite
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    Agreed. Only the searches are recorded, not the outcome. Also the type of card you hold is not recorded, only the limit, balance, whether you've taken cash, whether you're paying minimums and whether there's a promo deal in force.

    Just apply if you want to.

    Key points are not to miss any payments, not to exceed your limit and to pay off more than the minimum each month. Put as much turnover through as you can.
  • DandytfDandytf Forumite
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    I thought Hard Searches impacted score as advised via a few CRA's
    Replenished CRA Reports.
    Mid 2018 Help2save 50 uk pounds per month
    H.L. Active -Charter Savings .41% 25 u.k. pounds.
  • zx81zx81 Forumite
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    There are no scores. That's the whole point.
  • binaryuniversebinaryuniverse Forumite
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    Dandytf wrote: »
    I thought Hard Searches impacted score as advised via a few CRA's


    https://en.wikipedia.org/wiki/Snake_oil
  • shortcrustshortcrust Forumite
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    I’m going to sound like a broken record, but agggrrrr!!, another example of how credit ‘scores’ skew people’s behaviour.

    The OP has carefully rebuilt their credit file. I guess the reason for this was to broaden the range of credit options available to them. They’ve done it!:D But now the score has become so important that they’re considering not getting a product they ‘really need’ because there’s a change of losing a few points for a couple of months. The score becomes the end instead of the means.

    I’m not having a go at you OP, but of course you should apply.
  • edited 25 March 2018 at 10:57AM
    DandytfDandytf Forumite
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    edited 25 March 2018 at 10:57AM
    zx81 wrote: »
    There are no scores. That's the whole point.

    Yes there are scores -what importance the scores mean is debatable.
    I listened from another post an Experian radio talk where their rep explained their score (in simple terms )
    E.g. Checkmyfile advises soft searches don't impact you're score/file
    Whereas Hard searches do impact your score/file.
    Another example of negative score/file impact is making lots of credit applications in a short time and I beleive rejections don't help at all
    Replenished CRA Reports.
    Mid 2018 Help2save 50 uk pounds per month
    H.L. Active -Charter Savings .41% 25 u.k. pounds.
  • edited 25 March 2018 at 11:29AM
    shortcrustshortcrust Forumite
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    edited 25 March 2018 at 11:29AM
    Dandytf wrote: »
    Yes there are scores -what importance the scores mean is debatable.
    I listened from another post an Experian radio talk where their rep explained their score (in simple terms )
    E.g. Checkmyfile advises soft searches don't impact you're score/file
    Whereas Hard searches do impact your score/file.
    Another example of negative score/file impact is making lots of credit applications in a short time and I beleive rejections don't help at all

    The point is that no one sees these 'scores' other than you. At best they're a crude guide to how a lender might view your file. At worst they're misleading. This place is full of people who can't get a basic credit card despite their 'excellent score' and full of people like me who have mediocre scores who can get pretty much any product they like.

    One credit search on your file won't make any real world difference regardless of how it might affect your score. If you're not prepared to apply for things then what's the point in worrying your 'score' anyway?!

    An Experian rep is NOT the most objective of people to explain the merits of their score. They are after all in the business of selling scores!
  • zx81zx81 Forumite
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    Dandytf wrote: »
    Yes there are scores -what importance the scores mean is debatable.

    They're not credit scores.

    I can give you a number and tell you it's your credit score. It's not.
  • chattychappychattychappy Forumite
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    Dandytf wrote: »
    Yes there are scores -what importance the scores mean is debatable.
    I listened from another post an Experian radio talk where their rep explained their score (in simple terms )
    E.g. Checkmyfile advises soft searches don't impact you're score/file
    Whereas Hard searches do impact your score/file.
    Another example of negative score/file impact is making lots of credit applications in a short time and I beleive rejections don't help at all

    It's not really like that. And we all know that the Experian like to talk up the existance of a "score" that you need to nurture and worry about. There is no such thing.

    CRAs hold data which they supply to lenders. They will also give it to you, either in response to a subject access request or as part of a service you buy.

    First of all, only (hard) searches are logged and seen by lenders. They do not report the outcome of searches. Rejections are NOT logged by the likes of Experian because they don't even know about them.

    Secondly, scores. If you pay them, CRAs will calculate a score and give it to you. This is based on the data they hold. They might do the same for lenders - this could be based on the same algorithm or a different one. Lenders have their own data - eg what you put on the form - income, housing status etc. So they would generally score according to their own criteria and based on a different data set.
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